New Wave Giving: How the Next Generation of Philanthropists Is Rethinking the Model

Core Trends in the "New Wave" of Giving

• Second Golden Age of Philanthropy: The modern era is defined by three pillars:
  • Unprecedented wealth transfer estimated at $59 trillion between 2007 and 2061 (Boston College study).
  • An estimated $27 trillion of this transfer is projected to flow directly to charitable causes.
  • A parallel rise in "unprecedented" global problems including climate change, the gender gap, poverty, and peacekeeping.
• Blurring of Sectors: Traditional distinctions between nonprofit, for-profit, and philanthropy are dissolving into hybrid models where capital deployment tools include impact investing, consumerism, and technology platforms.
• Moral Integration: The millennial generation aligns money and decision-making with moral consequences early in their careers, contrasting with previous generations who often delayed giving until after accumulating wealth.

Strategic Shifts in Philanthropic Models

• From Donation to Investment: Philanthropy is shifting from pure grants to "investment" vehicles, including social gaming, gunshot detection technology (ShotSpotter), and impact investing, where business success and social impact become synonymous.
• Scalability via For-Profit Models:
  • Matt Dalio (Endless): Argues for-profit structures are often cleaner and more scalable for solving global access issues; his model uses smartphone supply chains to create affordable desktop computers for the 4.5 billion people in emerging markets without internet access.
  • Cameron Saul (BottleTop): Transitioned from a foundation to a social enterprise (fashion company) to leverage the power of consumption, proving that high-quality design combined with ethical production can redefine luxury brands and drive poverty alleviation.
  • Lely Jarami (MyYet/Various Ventures): Operates a portfolio including a luxury fashion brand (MyYet) employing indigenous artisans and a media platform (Mission Magazine) to educate consumers, emphasizing that businesses can be created solely to fund charitable works (family gives 30% of profit to charity).
• Impact Measurement:
  • Justin Rockefeller: Identifies an "unhealthy obsession" with anecdotal impact, advocating for a "healthy obsession" with data-driven metrics.
  • Rockefeller Brothers Fund: Divested from fossil fuels (symbolic action) and shifted endowment management to a separate account to align with a proactive impact investing strategy across private equity, real assets, and private debt.
  • Transparency Initiatives: A new nonprofit network of family offices was launched to aggregate transaction-level data, allowing families to compare returns and social impact metrics anonymously and learn from one another.

Network Dynamics and Global Interconnectivity

• Network Efficiency: Speakers noted that competition for resources often prevents collaboration; there is a push to compete on "how much good is done together" rather than individual output.
• Cross-Border Knowledge Transfer: Technology enables the "butterfly effect" where solutions (e.g., healthcare delivery mechanisms in Bangladesh) can be instantly shared and adapted for other regions (e.g., Zimbabwe).
• Platform Creation: Adapar donated software to power a pro bono investment management platform, enabling families to analyze and report on impact portfolios down to the transaction level.
• Global Citizenship: Lely Jarami emphasized that the world is becoming "borderless," with every action by a philanthropist leaving an example for future generations; she advocates for a global movement that transcends religion, politics, and culture.

Leadership and Intergenerational Influence

• Early Engagement: Matt Dalio started a foundation at age 16, demonstrating that early entrepreneurial engagement with philanthropy shapes both the individual's career trajectory and the family's understanding of impact.
• Legacy Transmission: Cameron Saul and Lely Jarami attribute their current models to observing their parents' dedication to using commerce as a vehicle for social change, viewing their work as a "passing of the baton."
• Human Capital: Beyond financial capital, the panel highlighted that time, personal networks, and mentorship are critical assets; Jarami described creating a "members club" for high-profile entrepreneurs to mentor the next generation of social impact leaders.

Q&A Highlights and Final Directives

• Response to Darius Baxter: The panel advised aspiring social entrepreneurs to:
  • Follow passion and recognize the role of luck in their success.
  • Leverage networks to spread messages and access resources.
  • Use personal challenges as fuel for passion while leveraging blessings to execute good.
• Future Outlook: The consensus is that philanthropy is no longer a peripheral activity but an integral part of global retail, technology, and investment, with the potential to solve intractable problems through scaled, market-based solutions.